Argon Denims (DHA:ARGONDENIM) Inventory Turnover : 0.76 (As of Dec. 2023)

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What is Argon Denims Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Argon Denims's Cost of Goods Sold for the three months ended in Dec. 2023 was BDT1,309 Mil. Argon Denims's Average Total Inventories for the quarter that ended in Dec. 2023 was BDT1,726 Mil. Argon Denims's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.76.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Argon Denims's Days Inventory for the three months ended in Dec. 2023 was 120.29.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Argon Denims's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 1.23.

Argon Denims Inventory Turnover Historical Data

The historical data trend for Argon Denims's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Argon Denims Inventory Turnover Chart

Argon Denims Annual Data

Trend

Dec13

Dec14

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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2.36

1.93

1.66

2.38

2.23

Argon Denims Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.45	0.60	0.66	0.70	0.76

Argon Denims Inventory Turnover Calculation

Argon Denims's Inventory Turnover for the fiscal year that ended in Jun. 2023 is calculated as

	Inventory Turnover (A: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2023 )	/ (	(Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )
=	4151.002	/ (	(1886.162	+	1828.506)	/	2 )
=	4151.002	/	1857.334
=	2.23

Argon Denims's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	1309.301	/ (	(1657.682	+	1794.17)	/	2 )
=	1309.301	/	1725.926
=	0.76

Argon Denims (DHA:ARGONDENIM) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Argon Denims's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	1725.926	/	1309.301	*	365 / 4
	=	120.29

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Argon Denims's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1725.926	/	1400.274
	=	1.23

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Argon Denims Inventory Turnover Related Terms

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Argon Denims (DHA:ARGONDENIM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Argon Denims Ltd (DHA:ARGONDENIM) » Definitions » Inventory Turnover

Traded in Other Exchanges

N/A

Address

57, Joar Sahara, New Airport Road, Level-6, Lotus Kamal Tower ONE, Nikunja-2- C/A, Dhaka, BGD, 1229

Website

http://www.argondenims.com

Argon Denims Ltd is engaged in manufacturing, dyeing, and finishing Denim Fabric based in Bangladesh and focuses on exports. The firm carries out the business of weaving, spinning, bleaching, dyeing, mercerizing printing, finishing, and selling denim fabrics, yarn, cloth, linen, hosiery, and other goods and fabrics whether textiles knitted or looped. It produces a medium and premium range of denim fabrics in various weights. The products include fabrics in 100% cotton, cotton stretch, cotton polyester, and cotton-polyester stretch. The dyeing line is equipped with light and dark indigo, Sulphur black, SBIT, IBST with casts and colors.

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